Conveyancers Trust Account Audit NSW
Stay Compliant with NSW Fair Trading. Protect Your Licence. Keep Client Funds Secure.
Every licensed conveyancer in New South Wales who receives or holds trust money must have their trust account audited annually. No exceptions. This obligation sits under the Conveyancers Licensing Act 2003, and the results must be lodged with NSW Fair Trading regardless of what the auditor finds.
Miss the deadline, and you risk fines up to $1,100 for late declarations or court penalties reaching $11,000. In serious cases involving false or misleading audit information, the Crimes Act 1900 (NSW) allows penalties up to $22,000 or two years imprisonment.
At Number Solutions Tax & Accounting, we help licensed conveyancers across NSW meet their trust account audit obligations on time and without complications. Based in Liverpool, South West Sydney, our qualified auditors handle everything from document review to lodging your report through the Auditor’s Report Online portal.
How the Conveyancers Licensing Act 2003 Governs Your Trust Account
The Conveyancers Licensing Act 2003 is the primary legislation governing how licensed conveyancers manage client funds in NSW. Part 5 of the Act lays out your trust account obligations in detail.
Under the Act, you must hold all client funds in a trust account kept at an authorised deposit-taking institution approved by the Fair Trading Commissioner. Those funds cannot be used for anything other than the purpose directed by the client.
Here are the key sections every conveyancer should know:
- Section 75: All trust account records must be audited and the results lodged with NSW Fair Trading via the Auditor’s Report Online portal. This applies whether the audit is qualified or unqualified. Since 1 July 2019, all results must be submitted regardless of findings.
- Section 79: Sets the qualifications and independence requirements for auditors. Your auditor must be registered with ASIC or meet specific criteria under this section.
- Section 80: If the auditor discovers any discrepancy in your trust money, they must report it to NSW Fair Trading immediately at audits@customerservice.nsw.gov.au.
- Section 62: You must report unclaimed money held in your trust account for more than 2 years to NSW Fair Trading in January each year. Revenue NSW reduced the statutory holding period for unclaimed money from 6 to 2 years effective 1 July 2025, so this obligation now covers a broader range of funds.
- Section 63: If you cease to be a licensee, or you are the personal representative of a deceased licensee, you must report any unclaimed trust money to NSW Fair Trading within specific timeframes.
Even if you did not receive or hold any trust money during the entire audit period, you still have an obligation. You must lodge a declaration form confirming the absence of trust funds.
Every licensee, both individual and corporate, must lodge either a trust account audit or a declaration by the deadline. Failing to lodge a correct declaration can trigger a fine of up to $1,100, or court action resulting in a penalty up to $11,000.
Declarations should be sent by email to audits@customerservice.nsw.gov.au.
We help NSW licensed conveyancers stay compliant and audit-ready with an affordable, independent trust account audit.
- Dedicated trust account audit for NSW conveyancing practices
- Fast and straightforward
- Clear, practical fixes explained simply
Who Can Audit a Conveyancer Trust Account in NSW?
Not every accountant qualifies to audit a conveyancer trust account. Section 79 of the Conveyancers Licensing Act 2003 sets strict qualification and independence rules.
A qualified auditor must be one of the following:
- A registered company auditor under the Corporations Act 2001
- A member of CPA Australia holding a current Public Practising Certificate
- A member of Chartered Accountants Australia and New Zealand (CA ANZ) with a Certificate of Public Practice
- A member of the Institute of Public Accountants (IPA) with a current practising certificate
- A person nominated by the licensee and approved in writing by the Fair Trading Commissioner
Independence Rules
Your auditor must be independent of your business. Within the last 2 years of the audit period, they must not have been:
- Employed by your conveyancing firm
- A partner in your business
- A licensee themselves
- A shareholder in a licensee corporation with fewer than 20 shareholders
You can verify whether an auditor is registered by searching their details on the ASIC website.
Whose Responsibility Is the Lodgement?
This is where many conveyancers get caught out. Although your auditor submits the report through the portal, you are legally responsible for ensuring it is lodged on time. The Conveyancers Licensing Act 2003 makes this clear.
If your auditor cannot complete the work within the agreed timeframe, engage another auditor immediately. Do not wait and hope for the best.
Audit Period, Deadlines and Lodgement for NSW Conveyancer Trust Accounts
The audit period for conveyancer trust accounts in NSW runs from 1 July to 30 June each year. The completed audit must be lodged through the Auditor’s Report Online portal no later than 30 September.
The audit must follow Australian Standards on Assurance Engagements, specifically ASAE 3000 and ASAE 3100. Your auditor forms an opinion on whether you have complied with the Conveyancers Licensing Act 2003 and its regulations in all material respects.
Milestone | Date |
Audit period starts | 1 July |
Audit period ends | 30 June |
Audit lodgement deadline | 30 September |
Declaration deadline (no trust money held) | 30 September |
Unclaimed money reporting | January (annually) |
What If Your Trust Account Had Zero Activity?
If your trust account was open but held a zero balance with no transactions for the entire audit period, you do not need a full audit. However, you must email a bank statement covering the full period to audits@customerservice.nsw.gov.au.
If no trust account existed at all during the period, you must lodge the prescribed declaration form instead. Doing nothing is not an option. Either an audit, a bank statement, or a declaration must be submitted.
Prior Year Submissions
Missed a previous deadline? Since August 2023, your auditor can submit outstanding audits for the previous 3 years by selecting the “+Submit Prior Year Audits” option in the portal. This does not remove the risk of fines for the original late lodgement, but it does help bring your compliance record up to date.
Types of Money Handled in Conveyancer Trust Accounts
Understanding the different types of money you handle is important because each category carries different audit and record-keeping obligations. In a typical conveyancing transaction, you may deal with several types of funds.
Trust Money
This is the main category. Trust money includes any funds held on behalf of a client in your general trust account. Common examples for conveyancers include:
- Property settlement deposits held pending completion
- Adjustments and disbursements related to the sale or purchase of land
- Strata levy contributions passed through during a strata-titled property transaction
- Client funds held for stamp duty or registration fees
All trust money transactions must be recorded in detail and are subject to the annual audit.
Controlled Money
Controlled money is funds you receive with a written direction to deposit into an account (other than a general trust account) over which you have exclusive control. This includes money held in a separate trust account opened specifically for a client’s transaction.
Controlled money has its own record-keeping requirements and must be accounted for separately during the audit.
Transit Money
Transit money is cash received with instructions to deliver it to a third party. It passes through your hands briefly and is not deposited into your trust account.
If the only trust money you received during the audit period was transit money, a full audit may not be required. However, you should confirm this with your auditor and still maintain proper records of all transit money handled.
Unclaimed Money
Any funds sitting in your trust account for more than 2 years without being collected or directed by the client are classified as unclaimed money under Section 62 of the Act. You must report these funds to NSW Fair Trading in January each year using the approved unclaimed money statement form.
Ready to make your trust account audit simple?
Book your FREE 15-minute consultation today and we’ll confirm what’s required, your timeline, and the smoothest path to a compliant, audit-ready outcome.
Why Choose Number Solutions for Your Conveyancer Trust Account Audit?
Number Solutions has been delivering trust account audits for NSW conveyancers for over five years. We understand the Conveyancers Licensing Act 2003 and the specific requirements of NSW Fair Trading.
- Conveyancer audit specialists. We are not generalist accountants. Our auditors know the 16-section checklist in the Auditor’s Report Online portal and understand conveyancer-specific rules, including the UID exemption for conveyancers.
- Fixed, transparent pricing. You know the cost upfront. No hidden fees and no unexpected charges at the end. Audit fees are a business expense and cannot be paid from your trust account.
- Full lodgement support. We handle the entire process, from collecting your trust account records to submitting the report through the portal. You stay focused on your conveyancing work.
- Year-round compliance guidance. Beyond the annual audit, we help you set up internal controls, manage unclaimed money reporting, and prepare for any NSW Fair Trading inquiries.
- Fast turnaround. We understand the 30 September deadline pressure. Our team works efficiently so you never risk a late lodgement fine.
FAQs
Yes. If you did not receive or hold any trust money during the audit period, you must lodge a declaration form confirming this. The form must be emailed to NSW Fair Trading at audits@customerservice.nsw.gov.au by 30 September. Both individual licensees and corporations must lodge either an audit or a declaration. Failing to lodge the declaration on time can attract a fine up to $1,100 or court penalties of up to $11,000.
Under Section 80 of the Conveyancers Licensing Act 2003, your auditor must report any trust money discrepancy to NSW Fair Trading immediately. This report goes directly to audits@customerservice.nsw.gov.au. You should also prepare your own explanation of the discrepancy and any corrective steps you have taken. A qualified audit report does not automatically mean penalties, but ignoring or delaying the response can make things worse.
Yes. Since August 2023, your auditor can submit outstanding audits for the previous 3 years through the Auditor’s Report Online portal using the “+Submit Prior Year Audits” option. Keep in mind that submitting late audits does not cancel any fines already issued for the original missed deadlines. It does, however, help restore your compliance status for future licence renewals.
Transit money is cash you receive with instructions to deliver it directly to a third party. It passes through your hands briefly and is not deposited into your trust account. If the only trust money you handled during the audit period was transit money, a full audit may not be required. However, you still need to maintain records of all transit money received and should confirm the exemption with your auditor before relying on it.
NSW Fair Trading can request trust account records going back several years during compliance reviews and investigations. As a general rule, maintain all trust account documentation for a minimum of 7 years. This includes bank statements, reconciliation reports, client ledger cards, receipt books, and deposit records. Having well-organised records protects you during audits and in the event of any dispute or investigation.
